This story is a continuation of last week; Last week I shared three financial tips that will help you to be financially stable; don’t co-sign a loan, make regular savings, and review any of your bank transactions. This week, I’m going to share five more financial tips that will change your life:
Spend on Your Stuff — It is well known that many of us spend more than we earn, leading to debt and a miserable life. We must begin to learn how to live with what we have; Most of us don’t usually live within our means. We can learn how to spend according to our money; It doesn’t mean buying small and cheap things but planning our expenses properly. Learn to spend within your income and you will avoid many financial problems.
Don’t Borrow Money You Can’t Afford – In an ideal world, everyone would have enough money for their needs, but that is not the case, so some of us need to borrow money to meet our needs. But bad credit can cause serious problems that can affect your finances and affect your life. Don’t borrow too much and if you do borrow, make sure it’s up to your limit and that it’s easy to pay back.
Don’t Borrow Money You Can’t Earn — This is the law in lending money to people; If you can’t afford to lose, don’t lend. For example, if someone wants to borrow money from you and you want to use that money soon, don’t lend it. My advice if you decide to lend to someone is not to expect your money back; it will save you the pain of chasing someone to pay you back and prepare you for financial disaster.
Make a Risky Investment — We don’t know what might happen to us and life happens (for example, losing a job, breaking down a car, etc.) at any time so we should be prepared. Emergency money is important because you can save it in times of need without relying on expensive short-term loans. So how much should you save for your emergency fund? A good rule of thumb is to have an emergency fund to cover six (6) months of your expenses. It’s not too late to start building your emergency fund so start saving now!
Find a Financial Advisor — Even if you have few assets or enough money, it is still good to seek advice on your finances. A financial advisor will help you identify your financial goals and guide you in the right direction on how to get there. Don’t wait until you have a crisis to seek financial advice, do it now.
In conclusion, I remind you that you don’t have to be rich to manage your money. In today’s world, financial literacy is more important than ever; whether you are rich or poor, managing your finances is essential to having a financially stable life. I know in the beginning it may be difficult to plan and live your life according to your financial goals, but slowly you will be able to make sure that every life decision you make will bring you closer to me. financial goals. If you are still reading this, I want to say that you have decided to take your financial life seriously, so start now!
Kelvin Mkwawa, MBA is a Professional Banker. He can be contacted at the email address: [email protected]